Adding value with digital analysis

Citation metadata

Author: Mark J. Nigrini
Date: Feb. 1, 1999
From: Internal Auditor(Vol. 56, Issue 1.)
Publisher: Institute of Internal Auditors, Inc.
Document Type: Article
Length: 1,674 words
Abstract :

The general auditor of Global Technologies employed digital analysis in auditing HomeTech, which the company is deciding to acquire from Republic Technologies. Utilization of the method helped the auditor to discover audit findings that contributed to the negotiation process and to develop a scenario after the acquisition. The auditor applied digital analysis to such areas as revenue files, cancelled checks, inventory, and disbursements. The audit uncovered a cash flow problem stemming from credit payments, changes in pricing schedule and commission rates, and inventory cost price ratios. As a result of these quick and precise findings, Global Technologies was able to gain a negotiating edge for the acquisition. It proves that new technology can be used by internal auditors in contributing to acquisitions and other business challenges.

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Source Citation

Source Citation   (MLA 8th Edition)
Nigrini, Mark J. "Adding value with digital analysis." Internal Auditor, Feb. 1999, p. 21+. Gale Academic Onefile, Accessed 22 Sept. 2019.

Gale Document Number: GALE|A54141370